RUT, Russell 2000 small cap index, repeat.

Speaking of patterns that were not recognized by Elliot, here is a variant on the theme of “running” triangles, in this instance an expanding one. The entire pattern could be construed as a wave 4. But there is no need to bend over backwards to accommodate unusual patterns, just juggle the letters a little. Call a 4, b 1, c 2,d 3 , e 4 and 5 5 and you have a perfectly good looking expanding diagonal triangle. On an arithmetic basis we are already there, on a semi-log scale we could have one more push up. Either way the next big move looks pretty ugly regardless of what kind of EW you subscribe to.

These charts are particularly instructive as they illustrate very well the absurdity of pumping up the stock market. Each successive leg up was (much) larger than the one preceding it. What we need now is a Bernanke2 and one day we will all be rich.